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this post was submitted on 17 May 2024
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As I said elsewhere, for most products, the makers ask how much they think people would be willing to pay for it. If that price is lower than an amount that would generate reasonable profit, they'll either no go to market or they'll look for ways to reduce or offset costs. Ads are a common way of keeping the price within what people are willing to pay.
No, that assumes that prices are based on cost, which is not true. Ads are a way to make money on top of what people will pay.